MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Reginald Middleton who wrote (14712)	12/10/1997 2:23:00 PM
From: nommedeguerre	Read Replies (1) of 24154

Hi Reggie, > Take a look at every category that MSFT dominated, they have dropped > prices, annually like a hot potato - with or without competition. Delivering a box of air and a $0.25 CD-ROM does have its advantages over delivering a zillion floppies and a real set of manuals like they did a few years ago. Somehow I do not believe that their net profit per unit shipped has been declining over the last 5 years. Is it not more likely that as market-share increases, the development cost per unit drops allowing them to lower the prices and maintain the same or better margins? Keeping prices low also deters new entrants into the software shell-game, ensuring future "upgrades" which is where the real money is at. Cut the price by 20% and make them buy it twice instead of once; improves those margins quite a bit. Cheers, Norm

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